The PACE project at the University of Wisconsin in Madison deals with problems associated with high-risk drinking on college campuses. Based on random samples, the study states that the percentage of UW students who reported bingeing at least three times within the past two weeks was 42.2% in 1999 (n = 334) and 21.2% in 2009 (n = 843). Test that the proportion of students reporting bingeing in 1999 is different from the proportion of students reporting bingeing in 2009 at the 10% significance level.

(A.1) Construct a 90% confidence interval around the difference-in-proportions estimate. Enter the lower bound of the interval you calculated in the box below. (In this case, be sure to use the standard error you calculated when determining the test statistic that uses information about the population proportion.)

(A.2) Construct a 90% confidence interval around the difference-in-proportions estimate. Enter the upper bound of the interval you calculated in the box below. (In this case, be sure to use the standard error you calculated when determining the test statistic that uses information about the population proportion.)

(B.1) How would you interpret the confidence interval?

(B.2) What connections can you draw between the confidence interval and the hypothesis test?(Because zero falls outside/inside the confidence interval, we reject/fail to reject the null hypothesis.)

Chemists-R-Us Ltd., a large pharmaceutical chain, had sales per share of $122 in 2019, on which it reported earnings per share of $2.45 and paid a dividend per share of $1.12. The company is expected to grow 6% in the long term and has a beta of 0.9. The current risk-free rate is 7% and the market return is 12.5%.

Required:

(a) Estimate the appropriate price/sales multiple for Chemists-R-Us Ltd. and calculate the share price based upon this multiple.

(b) You observe the shares are currently trading for $34 per share. Assuming the growth rate is estimated correctly, what would the profit margin need to be to justify this price per share?

(c) Given your answer to part b, do you think the market’s valuation of $34 is reasonable? Explain your answer.

You are the manager of a U.S. company situated in Los Angeles and manages the import/export division of the company. The company distributes (resells) a variety of consumer products imported to the U.S.A from Europe and also exports goods manufactured in the U.S.A. to Canada.

The first transaction is for the import of good quality wines from France, since a retail liquor trading chain customer in the United States, for who you have been doing imports over the past five years has a very large order this time. The producer in France informed you that the current cost of the wine that you want to import is and €2,500,000. The producer in France will only ship goods in three months’ time due to seasonal differences but payment will have to be conducted six months from now.

The second transaction is for the export of 3d printers manufactured in the U.S.A. The country where it will be exported to is Canada. The payment of CAD 2,500,000 for the export to Canada will be received twelve months from now.

You consider different transaction hedges, namely forwards, options and money market hedges.

You are provided with the following quotes from your bank, which is an international bank with branches in all the countries:

Forward rates:

Bank applies 360 day-count convention to all currencies (for this assignment apply 360 days in all calculations).

Annual borrowing and investment rates for your company:

Bank applies 360 day-count convention to all currencies. Explanation – e.g. 3 month borrowing rate on $ = 2.687%. This is the annual borrowing rate for 3 months. If you only borrow for 3 months the interest rate is actually 2.687%/4 = 0.67175% (always round to 5 decimals when you do calculations). Furthermore, note that these are the rates at which your company borrows and invests. The rates are not borrowing and investment rates from a bank perspective.

Option prices:

Bank applies 360 day-count convention to all currencies. (Students also have to apply 360 days in all calculations). Option premium calculations should include time value calculations based on US $ annual borrowing interest rates for applicable time periods e.g. 3 month $ option premium is subject to 2.687%/4 interest rate.)

1. Compare the forward quotes and money market hedges with each other to determine the best exchange rate hedges for Canada

Table 7: Canada exchange rate hedges compared:

Which hedging technique should be applied? ____________________________________

Goiters are caused by excessive stimulation of the thyroid gland.

a) Explain why an individual with hyperthyroidism may develop a goiter

b) Explain why an individual with hypothyroidism may develop a goiter

condition swyer syndrome

1a) Describe gonad development in the individual with the condition you have chosen: 1b) _Describe the development of internal genitals in the individual with the condition you chose:

Vaccines and pathogens have different intended consequences, yet they elicit similar physiological changes in the individual. How does the body respond if both events happen concurrently in an individual?

Case 1:

The following information relates to Chater’s Advertising Services for the accounting period ending December 31, 2018. The company is a leader within your local advertising industry but their accountant resigned just days before the final year end and only the information now presented was made available. The owners have decided to test your groups’ knowledge in accounting having been made aware that you are currently pursuing a course in accounting at the university level. In this regard your group has been approached to use the information presented alongside your knowledge to advise and present the company financial statements for the period.

                Charter’s Advertising Service

                                                       Trial Balance

                                                    December 18, 2018

Later in December, the business completed these transactions, as follows:

Dec. 21 Received $2,500 in advance for advertising service expected to be performed in January 2019.

Dec 21 Paid secretary $500 for the week December 17 to 21.

Dec. 26 Paid $1,000 on account.

Dec 28 Collected $1,200 on account.

Dec 30 Charter withdrew cash of $2,000 for personal use.

Requirements

1. Journalize the transactions of December 21 – 30 and post to the respective T-accounts and key all items by date. Write a brief narration for each journal entry.
2. At December 31, the business gathers the following information for the adjusting journal entries:

1. Accrued service revenue, $600
2. Earned $700 of the service revenue collected in advance on December 21 because of a change in the agreement between client and the company to split the advertising campaign to December 2018 and the remaining balance of $1,800 for January 2019.
3. Supplies on hand, $1,300.
4. Depreciation expense – equipment $260: furniture $600.
5. Accrued $500 expense for secretary’s salary December 24 to 28.

3. After journalizing the transactions in requirement 2, post them to their respective T-accounts. Write a brief narration for each journal entry.
4. Prepare the income statement and the statement of owner’s equity of Charter Advertising Services for the month ended December 31, 2018 and prepare the balance sheet at that date.

Assume that you are an independent auditor who runs your own auditing firm. Salma Company was
your client last year who engage another independent auditor this year because of some issues on
auditing fees. You know that Salma Company is having less profit now because of competition with
Khalsa Company. Because of this reason, Salma Company wants to buy Khalsa Company. Just two
months ago, Hajir Company became your new client. Hajir Company’s previous auditor suddenly
had a heart attack, so the company came to you for audit services and you accepted them. Today,
Hajir Company’s director came to you to discuss that they also intend to buy Khalsa Company. The
director knows that there is another company who wants to buy Khalsa Company too, but they are
not aware that it is Salma Company and they also don’t know that you were Salma Company’s
previous auditor. When the meeting is over, you start to feel uncomfortable. Since Hajir Company is
your new client, you want to help them and provide good service to them. But you realise that you
also possess confidential information concerning the plans of your previous client, Salma Company.
You are aware of Salma Company’s problems and you know it will help Salma Company to recover
profits if they will acquire Khalsa Company.
Required: Explain your answer to the following questions:
1. Which fundamental ethical principles in ISA 200 will be affected in this scenario? You can
explain more than one ethical principle, if applicable.
2. Can you disclose confidential information in this scenario? Explain your opinion.
3. How will you protect your reputation as an independent auditor?
4. What could be the possible course of action?